UNCLASSIFIED
FM AMMAN
TO DESKBY 23123OZ FCO
TELNO 457
114
UNCLASSIFIED
113763 MDHIAN 4761
HKE 020 126
RECEIVED IN STOCK
12 SEP 1990
OF 231055Z AUGUST 90
N
SANCTIONS: FREEZING OF KUWAITI ACCOUNTS AND ASSETS.
PROMINENT LOCAL ECONOMIST AND COMMENTATOR FAHED FANEK WRITING
IN AL RAI 23 AUGUST STRONGLY CRITICIZES BRITAIN FOR THE MANNER AND SCOPE OF THE FREEZING OF ACCOUNTS AND ASSETS OF EVERYONE WITH ANY CONNECTION WITH KUWAIT, EVEN THOSE WHO MERELY HAVE AN ADDRESS THERE. HE ACCUSES THE BANK OF ENGLAND OF OVERLOOKING THE FREEZING OF ACCOUNTS WHERE IT SUITS THEM EG TO CARRY OUT TRANSFERS, PAYMENT ON CHEQUES ETC WHERE BRITISH INTERESTS ARE INVOLVED.
HE DESCRIBES THE MEASURE AS A DESIRE TO PROTECT THE BRITISH ECONOMY FROM A RUSH OF WITHDRAWALS AND CALLS ON ALL FULL DEPOSITORS ΤΟ TRANSFER THEIR FUNDS OUT OF BRITAIN.
GUIDANCE SO FAR RECEIVED HAS NOT INCLUDED DETAIL OF HOW PRIVATE ACCOUNTS AND ASSETS ARE BEING FROZEN. GRATEFUL FOR EARLY GUIDANCE SO THAT WE MAY CONSIDER A REJOINDER.
REEVE
YYYY
ΜΑΙΝ
IRAQ/KUWAIT
LIMITED
229
ADDITIONAL
44
IRAQ/KUWAIT
(PASSED TO EMERGENCY UNIT)
NNNN
DISTRIBUTION
273
MED
MAFF
PAGE 1 UNCLASSIFIED